PetroVietnam seeks solutions to increase efficiency in implementing investment plans

To continue to improve and enhance investment work in the coming time, Chairman of the Board of Directors of PetroVietnam Le Manh Hung commented that it is necessary to change awareness and improve the qualifications of the leadership team (Board of Directors, General Director and Head of Project Management Board). In the investment portfolio management regulations, it is determined that limited resources must be allocated appropriately to implement the proposed strategy.

The Board of Members of the Vietnam Oil and Gas Group (PetroVietnam) met to listen to a report on the organization and management of the investment portfolio at the Parent Company, thereby reviewing the space and finding solutions to increase the effectiveness of implementing the 2025 investment plan.

PetroVietnam Board of Directors met and listened to a report on the organization and management of investment portfolio at the Parent Company. (Source: PVN)

Chairman of the Board of Directors of PetroVietnam Le Manh Hung chaired the meeting; attending were General Director of PetroVietnam Le Ngoc Son; members of the Board of Directors, Board of General Directors; and representatives of relevant departments of the Group.

According to the report of the PetroVietnam Economic - Investment Board, in the first 10 months of 2024, the value of PetroVietnam's investment implementation reached about 22.9 trillion VND. In which, the fields with high investment implementation rates are electricity industry, gas industry, E&P.

PetroVietnam's investment work has made many strides, with the investment disbursement rate higher than the national average. It is estimated that in 2024, the Group's investment disbursement value will reach about VND 33.76 trillion.

Regarding the 2025 investment plan, the Group is building 50.9 trillion VND, an increase of 49.2% compared to the estimated implementation in 2024 and striving to achieve the highest level, achieving an investment disbursement rate higher than the national average. In particular, promoting investment in areas such as gas industry and petrochemical refining.

The Group's investment plan for 2025 is not spread out, focusing on large chains/projects with a capital plan of about 37.6 trillion VND, accounting for 74% of the Group's total investment capital plan for the year, specifically: Block B project chain, E&P projects, Dung Quat Oil Refinery Upgrade and Expansion Project, Nhon Trach 3,4 Power Plant, oil and gas services...

Human resources play an important role

Participating in contributing solutions for investment targets in the last two months of 2024 and 2025, the E&P sector identified this as a special field, wishing to shorten the time and integrate procedures to remove difficulties. The Gas and Petrochemical Industry Sector proposed to strengthen decentralization of authority for mandatory projects, along with implementation monitoring plans. Necessary projects must have detailed plans and potential risk analysis to anticipate problems and control.

Representatives of the Electricity and Renewable Energy Board recognized that the personnel issue at projects has different characteristics from office work, therefore, requiring project leaders to be more drastic in checking, urging, and supervising the implementation of tasks at all levels at the project.

PetroVietnam Board of Directors Chairman Le Manh Hung requested the Group to streamline its apparatus and improve effectiveness, efficiency, and performance. (Source: PVN)

Agreeing with the above opinion, Mr. Le Xuan Huyen, Deputy General Director of PetroVietnam, said that it is necessary to train better human resources for project work and establish a separate unit specializing in project implementation. Human resources are an important factor in creating success and ensuring the progress and efficiency of projects.

Mr. Duong Manh Son, Deputy General Director of PetroVietnam, said that it is necessary to optimize capital resources, manage risks, and ensure that the business has effective returns. To strive to achieve the set goals, the Group needs to have solutions on investment management systems and regulations.

Through the practical projects, Mr. Son recognized that Petrovietnam's guiding viewpoint is very clear. Regarding implementation, it is necessary to have a separate unit in charge of projects, with focus in direction and implementation; promote internal training, unify the same perspective, the same reference system, and integrate new management tools.

According to Mr. Bui Minh Tien, Member of the Board of Directors of PetroVietnam, to manage well, it is necessary to classify the investment portfolio, evaluate the potential, risks and indicate which core portfolio is PetroVietnam's forte, generate early revenue and serve multiple objectives. Therefore, Mr. Tien requires the investment plan to optimize the portfolio, determine which portfolio is more prioritized, thereby allocating capital and personnel, and improving project management capabilities.

Leveraging the effectiveness of Portfolio Management Systems

Evaluating the Group's investment work in recent times, Chairman of the Board of Directors of PetroVietnam Le Manh Hung acknowledged that there have been some progress reflected in reality. As a result, from 2021 to present, the investment implementation rate has increased nearly 2 times. The Group has built an Investment Portfolio Management System, which plays a particularly important role for large-scale corporations like PetroVietnam. The Chairman of the Board of Directors acknowledged and highly appreciated the efforts of the Executive Board, professional committees and capital representatives of the units.

Panoramic view of offshore wind power base construction site.

To continue to improve and enhance investment work in the coming time, Mr. Le Manh Hung commented that it is necessary to change awareness and improve the qualifications of the leadership team (Board of Directors, General Director and Head of Project Management Board). In the investment portfolio management regulations, it is determined that limited resources must be allocated appropriately to implement the proposed strategy.

The head of PetroVietnam requested that the Group streamline its apparatus, improve effectiveness, efficiency, and performance; recognize difficulties and obstacles to find solutions, promote decentralization, and adjust appropriate structures; review the system of regulations and rules related to management activities and investment project implementation; and integrate related regulations.

PetroVietnam also needs to have an overall view of the investment picture, portfolio management, and classification by level and project; from there, have a plan for equity and arrange capital for investment projects.

In building an investment plan, the investment portfolio for each sector must be accompanied by an implementation and monitoring program. Regarding sectors with many fluctuations, the plan must be built according to high-low scenarios and have contingencies, accompanied by a risk management plan.

Regarding urgent matters that must be done immediately, the Chairman of the Board of Directors of PetroVietnam emphasized human resource solutions, including the mobilization of personnel, including leaders, and the development of personnel recruitment regulations, ensuring timeliness and meeting capacity; along with that, the development of salary and income regulations, recognizing the efforts and contributions of personnel participating in the project. Regarding projects that are behind schedule, whichever content is under the authority of the Board of Directors, Mr. Le Manh Hung requested immediate decentralization.

Source: https://baoquocte.vn/petrovietnam-tim-giai-phap-tang-hieu-qua-thuc-hien-ke-hoach-dau-tu-294362.html